An Important Announcement for Students of Final (Old) Examination – Extension by two more attempts i.e. May, 2010 and November, 2010

An Important Announcement for Students of Final (Old) Examination – Extension by two more attempts i.e. May, 2010 and November, 2010

Students are hereby informed that the Council of the Institute of Chartered Accountants of India, having due regard to the concerns of students belonging to Final (Old) stream, has decided to extend the Final (Old) Examination by two more attempts namely May, 2010 and November, 2010



Students concerned may note that the Council has made it clear that no further extension will be granted under any circumstances.

Affidavit must for gift in kind, over Rs. 50,000, from kind

t must affirm that donor is related to donee

New Delhi: From now on, when you get a gift in kind, valued at more than Rs. 50,000, from your parents or other relatives, make sure you have a sworn affidavit declaring the donor your kin.

The Central Board of Direct Taxes has ruled that any such gift will be taxable for the donee unless it is from relatives or given during occasions such as marriage or by way of inheritance.

On-the-spot verification

“The donee has to get an affidavit affirming the donor to be his mother, father, brother, sister or any other relative so that at the time of claiming exemption under the new arrangement, the income tax assessment officer can have an on-the-spot verification,” a senior IT official said.

An individual could preferably get one affidavit listing all gifts taken in the entire assessment year from different relatives or the same kin. The affidavit would save IT assessees the hassle of proving that the gifts, movable and immovable, were received or inherited from a relative residing in any part of the world. It would also establish the donee’s relationship with the donor, the official said.

The CBDT on September 30 notified that “with effect from October 1.... any gift in kind, being an immovable property or any other property, the value of which exceeds Rs. 50,000, will become taxable in the hands of the donee, being an individual or a Hindu Undivided Family (HUF), as income from other sources...”

The department will not tax gifts received from a relative on the occasion of marriage of the donee, under a will or by way of inheritance, in contemplation of the death of the donor, from any local authority as defined in Section 10(20) of the Act, from any fund or trust established under Section 10(23C) and from any trust or institution registered under Section 12AA.

Assesses will have to file income tax dues on the value of the gift and disclose its taxable value in the returns for the assessment year 2010-11.

Under the IT Act 1961, a relative is defined as a spouse, brother or sister, brother or sister of the spouse, brother or sister of either of the parents, any lineal ascendant or descendant and spouse of any of the relatives.

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Free access to ATMs of other banks closes on Thursday

MUMBAI: There would be limits to one's freedom to walk into any bank's automated teller machine from Thursday as third-party ATM usage would carry a cap on the withdrawal amount and the number of transactions each month. From October 15, a customer can take out a maximum of Rs 10,000 per withdrawal from ATMs not owned by the bank in which he has an account, and the number of such transactions would be limited to five a month. In August, the Reserve Bank of India (RBI) had asked banks to impose the restrictions on third-party ATM usage from mid-October. The step followed recommendations by Indian Banks' Association (IBA), an industry lobby. IBA had submitted its recommendations to the central bank last July citing financial burden on banks due to a large number of third party usage and small-ticket withdrawals, resulting in high interchange expenses for banks. Going by the IBA guidelines, a savings account holder may get five free third-party transactions a month and could be charged from sixth onwards. However, current account holders might not get any free third-party usage. The short-lived freedom of using ATMs of other banks, for services like cashwithdrawals and account enquiries, without being charged for the same, was brought in force by the RBI on April 1, just over six months back.